Help... Broker mistake on product transfer and LTV change

diddy_d · 14 January 2018 at 12:12AM

Hi all
I've got a bit of a problem as my Mortgage Broker (an apparent specialist for Contractors who make mortgages easy

) made a mistake on a product transfer application with the Halifax - the sequence of events are as below:

My mortgage consists of 2 sub accounts.

1. Current fixed term comes to an end at the end of the month
2. LTV since Jan 1 - Jan 12 was 59%, getting me into their 1.94% 5 year fixed product.
3. Broker applies for product transfer and accidentally applies the product to only 1 sub account
4. Due to the application being progressed to the point of 'ready to complete' the broker couldn't reverse the application. at this point the broker called me (last thursday 11/1) told me of the error and said that only I could call the halifax at this stage and request the product transfer to be reversed so that afterwards the broker could reapply.
5. I contact halifax straight away and they send the relevant instruction to their back office team - I was told 1-2 days is typical turnaround however they officially quote 5-10 working days!
6. I call up today to check whether the application was cancelled/reversed - and it hasn't been YET. However the index-linked valuation for my property has changed and the LTV is now 61%!!!

I have written a strongly worded email to the broker as I now am ineligible for the product we originally applied for and asked them to put the situation right - I assume they would need to seek advice from their Halifax BDM.

What I need help with is - what should I do now? I dont feel like making 8-9k overpayment just to get into a different tier of LTV (I've already made a big overpayment to get to the previous 59%!)

What should be within the power of the broker/lender to make the situation right, or is there absolutely nothing I can do and have to move to a 2.14% product?

To say I'm p!ssed off is an understatement.

ACG · 14 January 2018 at 12:36AM

Whoever has made the mistake needs to put you in the position you would have been had the mistake not happened.

So I would assume the the broker would need to pay the difference between the original deal and the new deal for as long as the deal lasted - ie if you would have been paying £500 a month on a 2 year fixed rate and you are now having to pay £510 a month, the broker would need to pay you £10 a month or £240?

But without knowing more, it is very difficult to say for sure.

Wait and see what happens and what the broker comes back with. They might be able to get Halifax to honour what was originally agreed.

diddy_d · 14 January 2018 at 12:53AM

Thanks ACG - I'll wait until Monday when the Broker gets back in office, but in a nutshell your guidance is what I'm shooting for. I think the difference will be around £30/month for 5 years, so about £1800 in total IF the lender cannot provide the previous product rate.

To be honest there's not much more to it - but if theres any other info that would help you provide me with more concrete advice please let me know.

Thanks again

Slip5 · 15 January 2018 at 11:43AM

ACG wrote: »

Whoever has made the mistake needs to put you in the position you would have been had the mistake not happened...

↑↑ This - I just quoted this succinct line to the broker. At first - naturally they tried pushing for vanilla excuses and suggestions like "request a revaluation", "tough luck", "we have done you favours in the past"... type stuff. I have kindly given them the opportunity to make right of the situation to make sure that what I end up paying over 5 years does not change based on if the mistake had not been made. Issue is being escalated, fingers crossed they come good (which they should)

ACG · 15 January 2018 at 11:57AM

Slip5 wrote: »

↑↑ This - I just quoted this succinct line to the broker. At first - naturally they tried pushing for vanilla excuses and suggestions like "request a revaluation", "tough luck", "we have done you favours in the past"... type stuff. I have kindly given them the opportunity to make right of the situation to make sure that what I end up paying over 5 years does not change based on if the mistake had not been made. Issue is being escalated, fingers crossed they come good (which they should)

Back end of last year, I recommended a product to a client because it had a free val and legals. I looked at a product that was only for existing customers of that particular lender, which the customer was not.

I carried on with the application and set up some solicitors which I paid myself (£200). I told the client after the application and solicitors fees what had happened because I did not want them to worry about it.

I am all for doing the right thing, but sometimes there should be a bit of give and take. If the broker has done you favours in the past, then you do not necessarily need to hold them 100% to what you are entitled to, just because you are entitled to it.

Slip5 · 15 January 2018 at 2:19PM

I hear what you're saying, and I agree with your principle. In any case, my starting position should be (and has so far been) to request the situation be put right, it is up to the broker to counter propose a solution to the matter upon which I shall decide whether it's acceptable - and we have an understanding that this will be the case, so let's see what they come back with

ACG · 15 January 2018 at 2:31PM

Fair enough. To be honest, in your situation I would be more inclined to push it because they had tried to get out of putting it right.

It is just common decency, you should not have to wait for an answer to confirm how they are going to put it right. It should be a case of "yea we f'd up, we will knock the difference off your bill"

Help... Broker mistake on product transfer and LTV change

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